House prices in London are now 10 times the average salary

A recent but little-noticed interim report by the London Housing Commission, published by the IPPR, offers a fresh reminder of the dire state of housing in London at the start of 2016.

What we call the housing crisis – rising rents, not enough houses, a property price boom – is having a profound affect on the lives of people trying to survive in one of the world’s premier cities.

House prices are now 44 per cent higher than they were before the financial crisis of 2008, with the average deposit for a home at over £70,000.

Meanwhile, rents continue to dwarf incomes, with weekly pay increasing by a mere 2 per cent, while rents have grown by 16 per cent in the past five years.

Home-ownership has also fallen over the last decade by more than 10 per cent, from 39 per cent to 27 per cent.

The report highlights the need for 500,000 new homes over the next decade, after just 194,000 were built in the last one. Public investment in new homes fell by a staggering 60 per cent per household between 2011 and 2015.

As of right now, 50,000 households are currently forced to live in temporary accommodation, including 78,000 children.

Lord Bob Kerslake, chair of the commission, said:

“the social and economic fabric of the city is being damaged by our dysfunctional housing market.”

Meanwhile, as Left Foot Forward has reported, homelessness in Britain is up by a third since 2009 and demand for emergency food remains shamefully high.

The London Housing Commission’s final report will be published in March ahead of the London Mayoral Election.

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17 Responses to “House prices in London are now 10 times the average salary”

Selohesra

Jacko

This is the fault of the last Labour government and their program of mass immigration, when immigration ran at 500% of the levels since the 1950s. Between the last two censuses, the population of London rose by 12%.

Sid

Chester Draws

Well yes. Given that 15% or so of Englanders live in London, that statistic is hardly remotely surprising. It means London is pretty much in line with all big cities, and not that much above the rural level come to that.

Average house prices in London are now 10 times the average salary

Not for Londoners they aren’t.

London is a very big city. Very big. You really can’t average the prices in the centre with those on the outside for a meaningful number. Inner city London prices are driven by totally different criteria to the outskirts. Millionaires buying toffy apartments in the inner city don’t drive up prices in the suburbs, and averaging the prices as if they do isn’t helpful.

There is a problem, and it isn’t the price of inner city London houses. It is that all England needs to start building houses, not just London.

CGR

Woo11

Ok so selling off just reduced housing for millions of lower waged, sorry, didn’t specify. Now we have ex-council flats selling for £1,000,000 in London, sure as hell reduces access if not stock! Oh and some of those high rises are now “des-res”